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CONCERNS NO-DEAL BREXIT WILL COST UK HAULAGE £240M

The UK haulage industry has aired concerns that a no-deal Brexit could add nearly a quarter of a million pounds to annual bills, ‘thanks to the imposition of WTO tariffs on new vehicles, parts and equipment’.

 

According to The LoadStar, trade association Logistics UK explained that 70 per cent of HGVs are manufactured in the EU and imported into the UK, and a 10 per cent tariff imposed by a no-deal Brexit could add £7,000 per vehicle.

This means that with the approximately 48,500 trucks bought by UK businesses each year could potentially lead to an annual tariff bill to the freight industry of £240 million, which the organisation says the sector cannot afford.

Logistics UK CEO David Wells said: “Add on a 4 per cent tariff on tyres and around the same level for spare parts from the EU, and that equates to a massive tax on logistics companies already reeling from the impact of the COVID-19 economic downturn.”

He added that it could be ‘final straw’ for many businesses in the sector who are operating on a 2 per cent margin, and simply cannot afford the extra tariffs, which would inevitably be passed onto consumers.

He has urged the government to agree on a deal before the 31 December deadline, adding that these tariffs are the ‘tip of the iceberg’, and further tariffs will apply indirectly to logistics and many other sectors in the supply chain, which will affect the prices of goods from new cars to fresh foods.

“Government needs to agree a deal with the EU so that our sector, and the economy at large, can start to rebuild with confidence,” he said.

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